Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Nickel and Tin Tumble as China’s Power Crunch Escalates

CommoditiesSep 27, 2021 05:45AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Nickel and Tin Tumble as China’s Power Crunch Escalates

(Bloomberg) -- Nickel and Tin fell sharply in London as China’s power crisis spread from factories to residents, adding risks to supply chains, demand and the economic recovery.

Residents in several northern provinces have already been dealing with blackouts, while traffic lights are being turned off, causing chaos on the roads in at least one major city. That shows how quickly the country’s power crisis is escalating, adding the risk of social instability to an economic slowdown and global supply chain disruptions. 

Economists at Nomura Holdings (NYSE:NMR) Ltd. and China International Capital Corp. have downgraded their growth forecasts as electricity shortages force businesses to cut back on production. The power crunch in the top metals consuming country has already caused supply losses at metal smelters, fabricators and steel mills in the past few months. 

“Tin supply has been impacted by power control measures several times already this year,” the International Tin Association said on its website. “What has been surprising in this round of restrictions is the effect on tin demand.”

Nickel prices were under pressure as the energy crisis is curbing output at stainless steel mills and power restrictions may tighten further into the fourth quarter, brokerage CICC said in a note on Monday. 

For Aluminum, the power curbs have thus far had a far greater impact on supply, helping fuel the metal’s rally to the highest level since 2008 earlier this month.

“Aluminum is a commodity now facing a stagnant supply profile,” Goldman Sachs Group Inc (NYSE:GS). analysts said in an emailed note on Monday. “Given an already robust demand profile with some reinforcement from green channels, these fundamental trends point to an era of structural tightness and price strength.”

Nickel fell as much as 2.9% to $18,820 ton on the London Metal Exchange before trading at $18,950 as of 10:39 a.m. local time. Tin dropped 4.2% to $35,000 a ton, tumbling from a record high struck last week. Aluminum traded little changed, while copper climbed 0.6%.  

 

Nickel and Tin Tumble as China’s Power Crunch Escalates
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
New Jazenevd
New Jazenevd Sep 27, 2021 8:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Small distraction. Commodity price increases are irreversible. Oil price goes to triple digits and industrial metals will follow. As usual, fake media, disguised as “financial news” tries to distort every news with political bias. Commodity prices go up, primarily because of overspending, covered by money printing. Fake media tries to ignore and obviate this obvious link to the dear Party policies.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email